Nick Scali first-half profit guidance at risk after container delays
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The news: Furniture retailer Nick Scali has said delays to several of the company's shipping containers has added "significant additional risks" to its ability to meet its first-half profit guidance.
The numbers: The unexpected delays and costs may see the company miss its first-half Australia and New Zealand NPAT guidance of between $30 million and $33 million.
The numbers: Nick Scali said that one of its freight forwarders and customs agents has experienced operational issues and is now under the administrator of a liquidator. This has resulted in a significant number of the company's containers being delayed at ports, causing challenges to the delivery of its products in Australia.
Nick Scali made an application to the Federal Court of Australia to seek orders for the shipping lines to release the company's containers through the giving of certain undertakings. With the court orders now granted, the company said it is working to have the containers delivered to its distribution centres.
However, due to the delays, Nick Scali now expects to incur unexpected additional storage and detention costs for the containers, "which cannot be quantified at this time".
The source: ASX announcement
